Arjun Ram Meghwal, MOS, Finance MinistryNEW DELHI: The government has assured homebuyers that their interest in stalled projects will be protected through newly implemented the Real Estate (Regulation and Development) Act and the Insolvency and Bankruptcy Code.

"Consumers’ interest is our highest priority," said Minister of State for Finance Arjun Ram Meghwal said while replying to a query about ongoing protest by homebuyers of Jaypee group and Amrapali.

The government is reviewing the situation and buyers' interest will be protected through the Real Estate (Regulation and Development) Act, which was passed last year and came into effect from May 2017, he said on the sidelines of a realty conference organized by industry body NAREDCO

Thousands of home buyers have been protesting following the National Company Law Tribunal (NCLT) admission of IDBI Bank's application to initiate insolvency proceedings against Jaypee Infratech for defaulting on loans worth Rs 526 crore.

Homebuyers in Amrapali projects have also started to protest as the developer’s lender Bank of Baroda has also approached NCLT for initiating insolvency proceedings against the company.

Meghwal said the government was aware of the home buyers’ problems and therefore brought a new regulatory law RERA last year for the benefit of both buyers and developers. The Insolvency and Bankruptcy Code would also help in ease of doing business, he said.

"For those developers who have defaulted on promise and not delivered flats, we are regularly reviewing the situation. Be it any developer group, regulators will do the job," Meghwal said. "Home buyers have met me. I have spoken to owner of Jaypee Group also. We are in regular touch. We will take care of interest of consumers."

He assured developers too that he will take up any issues that developers have related to the GST."We have an open mind. If there is any tax related issue, I will take up the matter in the GST Council,” he said.

Responding to SBI's MD (National Banking Group) Rajnish Kumar’s comment that there was not much clarity on the GST, Meghwal said the real estate industry should communicate if they have any issues.

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